Dilly Farm Supply is located in a small town in the rural west Data regarding the store's operations follow: Sales are budgeted at $296,000 for November, $316,000 for December, and $216,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. . The company desires to have an ending merchandise Inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. . Other monthly expenses to be paid in cash are $21,700. Monthly depreciation is $24,000. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The cost of December merchandise purchases would be: $ 28,000 80,000 165,760 1,010,000 $ 1,283,760 $ 242,000 746,000 295,760 $ 1,283,760 Multiple Choice $236,800